Investors also eyed events in Cyprus, where the government commenced a two-day meeting to discuss an urgent growth plan. Euro zone finance ministers have agreed to a 10 billion euro bailout for Cyprus, with Nicosia expected to foot up to 6 billion euros more through tax rises, spending cuts and a tax on depositors in two of the country's largest banks.

In stocks news, U.K. bookmaker Ladbrokes released a warning that operating profit is likely to be at the bottom of its range; shares closed around 8 percent lower.

Retailer H&M announced a 12 percent year-on-year dip in March sales on Monday due to the cold weather; shares closed 0.73 percent down.

U.S. investment firm Royalty Pharma raised its cash offer for Elan to $12 per share, upping its efforts to take control of the Irish drugmaker.

Reuters reported on Monday that the French government is considering trimming its stakes in utilities EDF and GDF Suez to raise as much as 4.2 billion euros ($5.5 billion), citing an unnamed government source.